Consumer confidence rebounds
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The news: Consumer confidence has rebounded in the first week of January as households’ weekly inflation expectations remained steady while confidence in both financial and economic conditions increased.
The numbers: The ANZ-Roy Morgan Australian Consumer Confidence index rose 3.6 points to 87.5 points in the week to 5 January.
The weekly inflation expectations subindex rose 0.3 points to 5.1%, while the current financial conditions subindex lifted 2.4 points and the future financial conditions subindex rose 5.7 points. The ‘time to buy a major household item’ subindex jumped 7.2 points to its third highest reading since June 2022.
The context: The report recorded an increase in confidence across most subindices. ANZ economist Madeline Dunk said while it is not unusual for a confidence boost in the first week of the year, the latest numbers represented a top three result since the beginning of 2023.
ANZ economists expect the Reserve Bank to make its first rate cut in May 2025.
What they said: “We expect the upward momentum in ANZ-Roy Morgan Consumer Confidence to continue through 2025, as tax cuts, rising real wages and eventually rate cuts support household disposable incomes,” Dunk said.
The source: ANZ research
